TD
UNITED
NATIONS
United Nations
Conference
on Trade and
Development
Distr.
LIMITED
TD/JUTE.4/L.1
13 March 2001
Original: ENGLISH
UNITED NATIONS CONFERENCE ON JUTE AND JUTE PRODUCTS, 2001
Geneva, 12 March 2001
Agenda item 7
PREPARATION OF THE TERMS OF REFERENCE OF THE INTERNATIONAL
JUTE STUDY GROUP
Draft Agreement establishing the Terms of Reference of
the International Jute Study Group 2001, as approved
by the Main Committee of the Whole
GE.01-50775
TD/JUTE.4/L.1
Page 2
DRAFT AGREEMENT ESTABLISHING THE TERMS OF REFERENCE
OF THE INTERNATIONAL JUTE STUDY GROUP 2001
PREAMBLE
The Parties to this Agreement,
Recognizing the importance of jute and jute products to the economies of a number of countries,
Considering that close international cooperation in finding solutions to the problems facing this
commodity will further the economic development of the exporting countries and strengthen
cooperation between exporting and importing countries,
Considering further the contribution made by the International Agreements on Jute and Jute
Products, 1982 and 1989 towards such cooperation between exporting and importing countries and
the desirability of enhancing the effectiveness of such cooperation in the future,
Conscious of the need to promote and undertake projects and activities designed to increase the
jute-derived earnings in developing jute-producing countries, thereby contributing to the
alleviation of poverty in these countries,
Have agreed as follows:
Establishment
1.
The International Jute Study Group, hereinafter referred to as “the Group”, is hereby
established to administer the provisions and supervise the operation of these Terms of
Reference. For legal, administrative, financial and operational purposes, the Group, when these
Terms of Reference enter into force, shall be considered as the successor entity to the
International Jute Organization, initially established under the International Agreement on Jute
and Jute Products, 1982 and maintained in existence under the International Agreement on Jute
and Jute Products, 1989.
Definitions
2.
For the purpose of these Terms of Reference:
(a)
“Jute” means raw jute, kenaf and other allied fibres, including Urena lobata,
Abutilon avicennae and cephalonema polyandrum;
(b)
“Jute product” means a product made wholly or almost wholly of jute, or
products whose substantial component by weight is jute;
TD/JUTE.4/L.1
Page 3
(c)
“Member” means any State, the European Community, or any intergovernmental
organization as provided for in paragraph 5 below which have notified their
acceptance or provisional application of this Agreement pursuant to paragraph 23
below;
(d)
“Associate Member” means any organization or any entity referred to in
paragraph 6 below;
(e)
“Special vote” means a vote requiring at least two thirds of the votes cast by
members present and voting provided that those votes are cast by a numerical
majority of members present and voting;
(f)
“Simple majority vote” means a vote requiring more than half of the total votes of
members present and voting provided that these votes are cast by a numerical
majority of members present and voting;
(g)
“Financial year” means the period from 1 July to 30 June inclusive;
(h)
“Jute year” means the international crop year for jute that runs from 1 July to 30
June inclusive.
Objectives
3.
The objectives of the Group shall be:
(a)
To provide an effective framework for international cooperation, consultation and
policy development among members with regard to all relevant aspects of the
world jute economy;
(b)
To promote the expansion of international trade in jute and jute products by
maintaining existing markets and by developing new markets, including the
introduction of new jute products and the development of new end-uses;
(c)
To provide a forum for the active participation of the private sector in the
development of the jute sector;
(d)
To address the issues of poverty alleviation, employment and development of
human resources, particularly women, in the jute sector;
(e)
To facilitate the improvement of structural conditions in the jute sector through
improvement of productivity and quality, and promotion of the application of
new processes and technologies;
(f)
To create and increase awareness of the beneficial effects of the use of jute as an
environmentally friendly, renewable and biodegradable natural fibre;
TD/JUTE.4/L.1
Page 4
(g)
To improve market intelligence with a view to ensuring greater transparency in
the international jute market in collaboration with other organizations, including
the Food and Agriculture Organization of the United Nations (FAO).
Functions
4.
In pursuance of its objectives, the Group shall have the following functions:
(a)
To develop an appropriate strategy for the improvement of the world jute
economy with particular emphasis on generic promotion of jute and jute products;
(b)
To conduct consultations and exchanges of information on the international jute
economy;
(c)
To initiate, sponsor, supervise, monitor, and act as a catalyst with respect to
projects and related activities aimed at improving the structural conditions of the
world jute economy and the general economic well-being of those employed
therein.
In exceptional cases, the involvement of the Group in the
implementation of projects shall be approved by the Council, provided that this
involvement shall not bring about any additional costs for the administrative
budget of the Group;
(d)
To provide and improve statistics and market intelligence on jute and jute-based
products in consultation with the Food and Agriculture Organization of the
United Nations and other appropriate bodies;
(e)
To undertake studies on various aspects of the world jute economy and related
issues; and
(f)
To consider problems or difficulties which may arise in the international jute
economy.
In implementing its functions above, the Group shall take into account the activities of other
relevant international organizations, including the Food and Agriculture Organization of the
United Nations (FAO).
Membership
5.
Membership of the Group shall be open to all States and the European Community which
are interested in the production or consumption of, or international trade, in jute and jute
products, and with the agreement of the Council to any intergovernmental organization having
responsibilities in respect of the negotiation, conclusion and application of international
agreements, in particular commodity agreements.
6.
Associate membership of the Group shall be open, with the agreement of the Council, to
those organizations and entities not entitled to full membership under the provisions of paragraph
5 above. The Council shall make rules concerning the eligibility, rights and obligations of such
associate members.
TD/JUTE.4/L.1
Page 5
Composition and Powers of the Council
7.
(a)
The highest authority of the Group established under these Terms of Reference
shall be vested in the Council comprising all members. The Council shall meet at
least once every year;
(b)
The Council shall exercise such powers and take such action or arrange for such
action to be taken as may be necessary to carry out and ensure the application of
the provisions of these Terms of Reference;
(c)
The Council shall adopt, by special vote, such rules as are considered necessary
to carry out the functions of the Group which shall be subject to, and not
inconsistent with these Terms of Reference. These rules shall include: (i) the
Rules of Procedure, (ii) Financial Rules and Rules relating to Projects, (iii) the
Staff Regulations and Rules and (iv) the Staff Provident Fund Rules;
(d)
The Council shall not have the power and shall not be deemed to have been
authorized by its members to incur, any obligation outside the scope of these
Terms of Reference or any of the rules referred to in subparagraph (c) above;
(e)
In order to achieve the objectives listed in paragraph 3 above, the Council shall
approve a work programme which shall be revised periodically.
Headquarters
8.
The Headquarters of the Group shall be in Dhaka, Bangladesh, unless the Council, by
special vote, decides otherwise. The Council shall conclude a Headquarters Agreement with the
host Government as soon as possible after these Terms of Reference have entered into force.
Decision-making and Distribution of Votes
9.
(a)
Except where otherwise specified, and subject to the provisions of subparagraph
(d) below, the Council, the Committee on Projects referred to in paragraph 10
below, and such committees and subsidiary bodies as may be established, shall
wherever possible take decisions by consensus. Where no such consensus can be
reached, any member may request that such a decision be taken by a simple
majority vote, unless a special vote is specified;
(b)
Each member shall be entitled to the number of votes allocated to it in accordance
with the provisions of sub-paragraph (c) below. In the case of voting, the
European Community and member intergovernmental organizations shall vote
with a number of votes equal to the total number of votes attributable to their
Member States;
(c)
All members shall together hold 2,000 votes. Fifty per cent of the total votes of
members shall be distributed equally among all members, subject to the
provisions of subparagraph (b) above. The remaining Fifty per cent of the total
votes shall be allocated to each member in proportion to its “Coefficient of Jute-
TD/JUTE.4/L.1
Page 6
related Importance” (COJI) as defined in sub-paragraph (d) below. The total of
the basic votes and the COJI-related votes of each member shall be appropriately
rounded so that there are no fractional votes and the total number of votes of
members does not exceed 2,000, subject, however, to the provision of subparagraph (e) below;
(d)
For the purposes of these Terms of Reference the “Coefficient of Jute-related
Importance” (COJI) of each member shall be its share in the total value attributed
to all member countries in accordance with the following formulae:
(i)
In the case of jute-producing countries, the weighted average volume of
production of 40 per cent and the average volume of net trade of 60 per
cent of jute and jute products over the most recent three-year period for
which relevant statistics are available;
(ii)
In the case of non-jute-producing and net jute importing-countries, the
average volume of their net imports of jute and jute products over the most
recent three-year period for which relevant statistics are available.
(e)
No member representing a single country shall have more than 450 votes. Any
votes over this figure arising from the methodology prescribed in sub-paragraphs
(c) and (d), and provided for in sub-paragraph (i) below, shall be redistributed
among all other members on the same basis of computation as provided for under
those subparagraphs;
(f)
If, for any reason, difficulties should arise in the determination of votes through
the use of the methodology prescribed in sub-paragraphs (c), (d) and (e) above,
the Group may, by special vote, decide on a different methodology for the
distribution of votes;
(g)
The presence of members holding together 1,000 votes shall be required for the
commencement of any Council meeting. The presence of members holding
together 1,200 votes shall be required for any decision to be taken by the Council;
(h)
The Council shall distribute the votes for each financial year at the beginning of
the last session of the preceding year in accordance with the provisions of this
paragraph. Such distribution of votes shall remain in effect for the full jute year,
except as provided for in sub-paragraph (i) below;
(i)
Whenever the membership of the Group changes or when any member has its
voting rights suspended or restricted under any provisions of the rules of
procedure, the Council shall re-distribute the votes of all other members in
accordance with the provisions of this paragraph. The Council shall decide the
date on which the redistribution of votes shall become effective;
(j)
A member authorized by another member to cast the votes held by the
authorizing member under this paragraph shall cast such votes in accordance with
the instructions of the authorizing member.
TD/JUTE.4/L.1
Page 7
Committee on Projects (COP)
10.
(a)
The Council shall establish a Committee on Projects (COP), which shall be open
to all members. The Committee may invite associate members and other
interested parties to participate in its work;
(b)
The Committee on Projects shall advise the Council on all aspects of projects and
related activities in accordance with the rules to be established by the Council;
(c)
The Council may, in certain circumstances, delegate to the Committee on Projects
its powers relating to the approval of projects and related activities. The Council
shall establish rules governing such delegation of powers to the Committee on
Projects.
Private Sector Consultative Board
11.
(a)
To facilitate interaction with the private sector, the Council shall establish a
Private Sector Consultative Board (hereinafter referred to as the “Consultative
Board”). The Consultative Board shall be a consultative body, which may make
recommendations to the Council in matters related to these Terms of Reference;
(b)
The Consultative Board shall consist of associate members. Other private sector
entities which express a relevant interest may participate by invitation;
(c)
The Consultative Board shall submit regular reports to the Council;
(d)
The Consultative Board shall establish its own rules of procedure, consistent with
the provisions of these Terms of Reference.
Committees and Subsidiary Bodies
12.
The Council may establish other committees or subsidiary bodies, in addition to the
Committee on Projects and the Private Sector Consultative Board on such terms and conditions
as it may determine.
Secretariat
13.
(a)
The Group shall have a Secretariat consisting of a Secretary-General and such
staff as may be required;
(b)
The Secretary-General shall be appointed by the Council by special vote. The
terms and conditions of appointment of the Secretary-General shall be governed
by the rules of procedure of appointment except for the appointment of the first
Secretary-General;
(c)
The Secretary-General shall be the chief administrative officer of the Group and
shall be responsible to it for the administration and operation of these Terms of
Reference in accordance with the decisions of the Council;
TD/JUTE.4/L.1
Page 8
(d)
The Secretary-General shall appoint the staff in accordance with the regulations
established by the Council. The staff shall be responsible to the SecretaryGeneral.
Consultation and Cooperation with others
14.
(a)
The Group may make arrangements for consultations and cooperation with the
United Nations, its organs or specialized agencies, and with other
intergovernmental organizations and institutions, as appropriate;
(b)
The Group may also make such arrangements as it considers appropriate for
maintaining contact with interested Governments of non-member countries, with
national and international non-governmental institutions, with private sector
organizations and with research institutions which are not associate members;
(c)
Observers may be invited to attend meetings of the Council or its subsidiary
bodies on such terms and conditions as the Council or those bodies may decide.
Relationship with the Common Fund
15.
The Group may apply to be designated as an International Commodity Body (ICB) under
article 7(9) of the Agreement establishing the Common Fund for Commodities (CFC), for the
purpose of sponsoring, in accordance with the provisions of these Terms of Reference, projects
on jute and jute products to be financed by the Fund. Decisions on the sponsoring of such
projects shall normally be taken by consensus. If consensus cannot be reached, decisions shall
be taken by a special vote. No member shall be responsible by reason of its membership in the
Council for any liability arising from borrowing or lending by any other member or entity in
connection with projects. The Secretary-General is authorized to conclude Agreements with the
Fund for approved projects.
Legal Status
16.
(a)
The Group shall have international legal personality. In the territory of each
member, and subject to its national legislation, the Group shall, in particular, but
subject to paragraph 7(b) above, have the capacity to enter into contracts, to
acquire and to dispose of movable and immovable property, and to institute legal
proceedings;
(b)
The status of the Group in the territory of the host country shall be governed by
the Headquarters Agreement between the host Government and the Council,
referred to in paragraph 8 above;
(c)
As the legal successor to the International Jute Organization, the Group shall
assume responsibility for all the assets and liabilities of the former Organization.
TD/JUTE.4/L.1
Page 9
Financial Accounts and Budget Contributions
17.
(a)
For the purposes of these Terms of Reference, the Group shall establish the
following accounts:
(i)
(ii)
The Administrative Account; and
The Special Account
(b)
Each member shall contribute to the Administrative Account in accordance with
the provisions of the rules of procedure, within the framework of an annual
administrative budget which shall be approved by the Council. The contribution
of members shall be directly proportional to the votes allocated to them under the
provisions of paragraph 9. The payment of the contribution by each member
shall be made in accordance with its constitutional procedures;
(c)
In addition to the contributions to the Administrative Account within the
framework of the Annual Administrative Budget, the Group may accept
contributions to the Special Account. The Special Account shall be established
for the purpose of financing projects, and pre-project and related activities. The
possible sources of finance for the Special Account may include:
(i)
Voluntary contributions from members, associate members and other
sources; and
(ii)
Regional and international financial institutions, including the Common
Fund for Commodities, the United Nations Development Programme, the
World Bank, the Asian Development Bank, the International Fund for
Agricultural Development, the Inter-American Development Bank and the
African Development Bank.
Statistics, Studies and Market Information
18.
(a)
The Group shall analyse and process jute trade information and statistics collected
from the Food and Agriculture Organization of the United Nations (FAO), other
international and national institutions and the private sector. The Group shall
provide and make available to members, associate members and other interested
parties the market outlooks and intelligence, including information on stocks and
consumption by specific markets and end-use industries. The Group shall also
encourage national institutions in producing member countries to improve data
collection in the jute sector and to disseminate the results to all interested parties.
In so doing, every effort shall be made, as far as practicable, to minimize
duplication.
(b)
The Group shall undertake such studies related to the international jute economy
as may be agreed to by the Council;
TD/JUTE.4/L.1
Page 10
(c)
The Group shall endeavour to ensure that information made available by it does
not prejudice the confidentiality of the operations of Governments or persons or
enterprises producing, processing, marketing or consuming jute.
Annual Assessment and Reports
19.
(a)
The Group shall undertake an annual assessment of the world jute situation and
related matters in the light of information supplied by members and supplemented
by information from all other relevant sources, including periodic evaluation
reports by donors. The annual assessment shall include a review of expected jute
production capacity for future years and an outlook for jute production,
consumption and trade for the following calendar year, for the purpose of
assisting members in their individual assessments of the evolution of the
international jute economy;
(b)
The Group shall prepare a report incorporating the results of the annual
assessment and distribute it to members. If the Group deems it appropriate, this
report, as well as other reports and studies distributed to members, may be made
available to other interested parties in accordance with the rules of procedure;
(c)
The Group shall undertake periodic evaluations of its activities at least every two
years, and compare their conformity to the objectives and functions of the Group
as set out in paragraphs 3 and 4 above.
Market Development
20.
The Group shall, in consultation with members, associate members and interested
parties, identify constraints and opportunities in the world market for jute and jute products with
a view to undertaking appropriate activities, with particular reference to increasing the demand
and developing the market for jute and jute products, as well as dissemination and commercial
exploitation of emerging technologies.
Obligations of Members
21.
Members shall use their best endeavours to cooperate and to promote the attainment of
the objectives of the Group, in particular by providing the data referred to in paragraph 19(a)
above.
Reservations
22.
No reservations may be made to any of the provisions of these Terms of Reference.
Entry into force
23.
(a)
These Terms of Reference shall enter into force when States together accounting
for 60 per cent of trade (imports and exports combined) in jute and jute products,
as set out in Annex A to these Terms of Reference, have notified the SecretaryGeneral of the United Nations (hereinafter referred to as “the depositary”)
TD/JUTE.4/L.1
Page 11
pursuant to sub-paragraph (b) below of their provisional application or definitive
acceptance of these Terms of Reference;
(b)
Any State or any intergovernmental organization referred to in paragraph 5 which
desires to become a member of the Group shall notify the depositary that it
accepts definitively these Terms of Reference or that it accepts to apply them
provisionally, pending the conclusion of its internal procedures. Any State or
intergovernmental organization which has notified its provisional application of
these Terms of Reference shall endeavour to complete its internal procedures as
soon as possible, and shall notify the depositary of its definitive acceptance of
these Terms of Reference;
(c)
If the requirements for entry into force of these Terms of Reference have not been
met on 31 December 2001, the Secretary-General of the United Nations
Conference on Trade and Development shall invite those States and
intergovernmental organizations that have notified their acceptance or provisional
application of these Terms of Reference to decide whether or not to put these
Terms of Reference into force among themselves;
(d)
When these Terms of Reference enter into force, the Secretary-General of
UNCTAD shall convene an inaugural meeting of the Council as soon as possible
thereafter. Members shall be notified at least one month, where possible, prior to
that meeting.
Amendment
24.
These Terms of Reference may be amended only by consensus of the Council. The
Secretary-General shall notify the depositary of any amendments adopted under this paragraph.
An amendment shall enter into force 90 days after the depositary has received the notification of
acceptance from members holding together at least 60 per cent of the votes.
Duration, Extension and Renegotiation
25.
(a)
The Group shall remain in force for a period of eight years, unless the Council,
by special vote, decides to extend or renegotiate these Terms of Reference as
provided for in sub-paragraphs (b) and (c) below or to terminate them as provided
for in paragraph 27 below;
(b)
The Council may, by special vote, decide to extend the duration of these Terms of
Reference for not more than two periods of two years each;
(c)
The Council may, by special vote, decide to renegotiate these Terms of
Reference.
Withdrawal
26.
(a)
A member may withdraw from the Group at any time by giving written notice of
withdrawal to the depositary and to the Secretary-General of the Group;
TD/JUTE.4/L.1
Page 12
(b)
Withdrawal shall be without prejudice to any financial obligations already
incurred by the withdrawing member and shall not entitle it to any rebate of its
contribution for the year in which the withdrawal occurs;
(c)
Withdrawal shall become effective 12 months after the notice is received by the
depositary;
(d)
The Secretary-General of the Group shall promptly notify each member of any
notification received under this paragraph.
Termination
27.
The Council may at any time, by special vote, decide to terminate these Terms of
Reference. Such termination shall take effect on such date as the Council shall decide. The
Secretary-General shall notify the decision taken under this paragraph to the depositary.
Liquidation
28.
Notwithstanding the expiry or the termination of these Terms of Reference, the Council
shall continue in being for as long as is necessary, but not exceeding a period of 12 months, to
carry out liquidation of the Group including settlement of the accounts.
TD/JUTE.4/L.1
Page 13
Annex A
Statistical information on net world trade (imports and exports) in jute and
jute products for the purposes of entry into force of these Terms of Reference
Table 1: Net Exports of Jute and Allied Fibres ('000 Metric tons in fibre
equivalent)
Average of
96/97 - 98/99
Share (%)
Country
1996/97
1997/98
1998/99
World
1 011.2
1 090.6
997.9
1 033.2
100.0
794.1
193.3
11.7
999.1
801.3
262.6
10.7
1 074.6
779.3
192.6
10.7
982.6
791.6
216.2
11.0
1 018.8
76.6
20.9
1.1
98.6
10.1
10.1
2.0
1 011.2
11.1
11.1
4.9
1 090.6
12.1
12.1
3.2
997.9
11.1
11.1
3.4
1.1
1.1
0.3
1 033.2
100.0
A. Current
Members of IJO*
Bangladesh
India
Nepal
Sub-total A:
B. Past Members of
IJO
Thailand
Sub-total B:
C. Others
Total (A+B+C)
*
IJO is the International Jute Organization established under the
International Agreement on Jute and Jute Products 1989.
TD/JUTE.4/L.1
Page 14
Table 2: Net Imports of Jute and Allied Fibres
('000 MT in fibre equivalent)
[To be completed]